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Unsustainable pay increases for public sector workers will put Ireland stability at risk – The Irish Times

A columnist argues that excessive public sector pay rises in the early 2000s helped trigger the 2008 financial crash, as public service numbers grew 35% from 2000 to 2008 and pay rose 32% from 2003 to 2008, against 18% cumulative inflation. A flawed benchmarking process pushed senior public servants' pay 8% above private-sector equivalents by 2006, and middle and lower grades 22% to 31% higher. Even after the crash, Ireland ranked near the top of OECD public pay tables in 2011. Minister Jack Chambers said civil servant numbers rose 52% over the past decade, from 35,032 to 53,161, and the wider public service rose 38%. The author says union demands for inflation-matching rises are reasonable, but the Government should resist excessive demands not accompanied by changes in work practices, including a return to the office.

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